Bangladesh doubles ERQ for goods, exporters relying heavily on imports

Bangladesh Bank recently doubled the exporters’ retention quota (ERQ) for merchandise exporters relying heavily on imported raw materials, intermediate goods, machinery and other production inputs, raising the permissible retention limit from 7.5 per cent to 15 per cent of the repatriated free on board (FOB) value.The central bank said the new directive comes into effect immediately and instructed all authorised dealers (ADs) in foreign exchange across the country to implement the revised quota and inform their concerned clients accordingly.

The revised retention limit is expected to provide exporters with greater flexibility in managing their foreign currency requirements, according to domestic media reports.

Bangladesh Bank has doubled the exporters’ retention quota for goods, exporters relying heavily on imported raw materials, intermediate goods, machinery and other production inputs, raising the permissible retention limit from 7.5 per cent to 15 per cent of the repatriated FOB value.
The decision is expected to provide exporters with greater flexibility in managing their foreign currency requirements.

Exporters feel the decision will improve cash-flow management of companies, strengthen foreign exchange liquidity at the enterprise level and enhance the global competitiveness of exports.

Fibre2Fashion News Desk (DS)